Vital Times
The Changing Role of Brand within the
Health & Life Sciences Industry

We believe brands have the power not only to change individual
lives, but to change the world. We also believe that brands are the
most underleveraged business asset within the health and life
sciences industry.

We believe brands are the
most underleveraged business
asset within the health & life
sciences industry.
This can no longer be the case.

core business driver – one that directly influences a manufacturer’s
business strategy from the very beginning. It must be seen as a way
to emotionally connect with customers, drive long-term loyalty and
generate revenue.

Looking at your brands with a critical eye?
Our industry, unlike others, is experiencing value-driven
transformational change at an unprecedented rate.
Our complex, disparate and demanding customer groups (payers,
providers, consumers) are at the core of this change. Payers are
working to drive down costs, while providers are being required to
address the needs of consumers more directly via superior clinical
results. To add to the challenge, consumers typically shy away from
what most healthcare companies are offering, yet with an increasing
level of discernment and savvy when they do. (See Figure 1)

A brand is more than just a symbol, slogan or trade name. It
transcends logos and visual identities. Brands are living business
assets that come to life across all touchpoints when created and
managed properly. They establish identity, provide differentiation
and, most importantly, drive economic value.

Figure 1

Why are brands particularly important to the
health & life sciences industry?

Three core groups, each comprised of a plethora
of sub groups, are wrestling for power and to
have their needs met.

First, brands possess the unique ability to transform attitudes.
Our industry sells products and services that consumers don’t
necessarily want to buy – products and services that tend to remind
them of imperfect health or force them to confront their mortality.
The role that brands play within the health & life sciences industry
is not to simply identify a particular product or service, but rather
to transform patients’ attitudes towards the treatment or solution
being offered. In effect, brands need to create a positive association,
and, in some cases, a sense of hope.

Healthcare has a unique customer
dynamic unlike any other industry

Payers
Show me the value
The payer is gaining in inﬂuence over the
MD and driving down costs at a
corporate level versus at a product level

Product Brands
Services

Second, brands are capable of engaging consumers and healthcare
professionals by providing them with a much-needed sense of clarity
– highlighting both rational and irrational points of differentiation
amongst other products and services. By leveraging brands properly,
manufacturers will be able to give patients a reason to use products
and services that goes well beyond “my doctor said so.”
Finally, brands are able to connect emotionally with their respective
audiences. A well-managed brand finds the connective tissue between
the functional and emotional responses of the patient—linking
the head and the heart. Purchasing products and services requires
patients to make intimate and, in some cases, life-changing decisions.
Brands can play an instrumental role in guiding them through what
can sometimes be a difficult and emotional decision-making process.
Given this understanding of the importance of brand in people’s
lives, it is past time for us to evolve the role of brand in the health
& life sciences industry. A brand can no longer be viewed as strictly
a promotional/communications tool. It must be recognized as a

Vital Times – 1

CORPORATE
BRAND

Consumers

I don’t want what
you’re selling

The power, and health IQ,
of the patient is growing leading
to push back on decisions and
higher demand for results

Providers
Show me the beneﬁts
HCP’s are under pressure
from Payers to cut costs and
patients to provide more
efficacious solutions

Source: InterbrandHealth

Furthermore the industry has recently experienced considerable M&A
activity, downsizing, integration and diversification of portfolios.
In the coming years, pharmaceutical companies will face patent
expiry and loss of exclusivity on a number of the blockbuster brands
that drove revenue streams in previous decades. End users will
demand more targeted therapies and pharmaceutical companies will
experience less demand to deliver potential blockbuster products that
once dominated their portfolios.

We believe this has led to a significant change in the role that brand
can and does play within our space, whether it be strengthening the
product brand proposition or bringing the corporate brand into play
for the first time. The role that brand plays at both a product and
corporate level is rapidly changing to meet the needs of the newer
commercial models. (See Figure 2)

Figure 2

The Role of Brand in Healthcare
Brand has traditionally played a less prominent
role in the healthcare sector than in other major
consumer segments, but this is changing rapidly.
100

product brands through a “house of brands” approach. Rather, industry
leaders should use brands – all brands (corporate, product, category) –
in a smarter way. And, in some cases, this may involve industry leaders
changing their respective brand models altogether.
Some industry leaders will be inclined to shy away from exploring
alternative brand models due to the risk associated with linking
the corporate name to the products. But the proliferation and
acceleration of traditional media, combined with the instantaneous
consumer dialogue of digital/social media outlets, are making
our world and our industry increasingly transparent. As such, the
separation between product and manufacturer can no longer be
maintained. It is important for industry leaders to recognize this and
understand that they can benefit from a more aggressive approach –
one that elevates the role of the corporate brand and capitalizes
on the upside gains and loyalty that such an approach can create.

For those health & life sciences leaders who fully dedicate themselves
to leveraging their respective corporate brands, the rewards will
be numerous. In recognizing brand value as a strategic business and
financial asset, they will be able to drive demand, loyalty, retention
and purchasing power for their respective organizations – all of which
will subsequently translate into an analytical measurement
of downstream economic earnings and shareholder value.

Source: Interbrand Analysis

Many manufacturers are recognizing and responding to this
transformational change by shifting their focus from a productoriented value offering to a more solutions-oriented value offering.
Additionally, solutions-based offerings are increasingly aligning to the
brand proposition of the corporation or enterprise. While this shift
has been apparent throughout other sectors, it is just now beginning
to have an impact on the health & life sciences sector. This current
trend is forcing many manufacturers to bolster the strength of the
corporate brand in order to create differentiation from competitors.

The role of brand within the
health & life sciences industry is
to transform attitudes towards
the products and services
being offered.

The core value of a brand is
derived from its ability to drive
demand, loyalty, retention and
purchasing power.
Here are some core questions you should ask yourself as you assess
the value of your current brands:
1. How can brands create value for your organization and its
shareholders?
2. Does your corporate brand promise match your long-term
business strategy?
3. Has your commercial model changed significantly in the last
3–5 years? Does your brand model properly align to any change
in your commercial model?
4. Are you maximizing the revenue potential of your product,
portfolio, and corporate brands?
5. Are your people (employees) fully engaged with your corporate
brand? Do they live the brand?

Is your brand model aligning with the changes
in your commercial model?
It is up to those leading the health & life sciences sector to challenge
the current brand model. The focus can no longer be solely on promoting

How we answer these questions—not in words but, in our actions—
will go a long way in determining whether we lead the inevitable
evolution of our industry, or lag behind. Put simply: The future of
health & life sciences branding is here. Let’s embrace it together.

Vital Times – 2

Wes Wilkes is InterbrandHealthâ&#x20AC;&#x2122;s
Executive Director of Global Strategy.
For more information on this subject
matter or to schedule a meeting with
InterbrandHealth, please email
info@interbrandhealth.com
or call 212.798.7500.